Business Economics

Business Economics

Costs are defined as money paid by a firm to obtain the factors of production. While you may understand what a cost is it is important that you are able to define the term succinctly in an exam to gain maximum credit. Types of Cost We split costs in to …
Traditionally we assume that firms aim to profit maximise. For a perfectly competitive firm this will be true as they have no choice but monopolies are price makers and so could theoretically choose a point other than profit maximisation.